Other Income 415-25-05-20-20

(Revised 10/1/15 ML #3453)

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Income from all other sources not excluded by 415-25-05-30 must be included in the determination of the household's income.

  1. TANF, Diversion Assistance and TANF Transition Job Retention.
  2. Monthly or regular payments from a pension fund (such as social security, SSI, railroad, veterans, & private pensions) dispersed according to the plan or lump-sum withdrawals from an IRA, Keogh plan, annuity, or similar instrument. To arrive at the countable income, the amount of the penalty (if any) should be deducted from the gross disbursement amount.
  3. Benefits such as unemployment compensation, worker's Compensation, veteran's compensation, and union compensation during strikes. Since these types of income are considered unearned income, use gross amount even if taxes are voluntarily deducted.
  4. Dividends and interest from investments and trusts.
  5. Disability benefits.
  6. Need-related veterans benefits.
  7. Child support and alimony payments. It is mandated by LIHEAP that ND√erify, when available, must be used to determine child support income. See IM 5181 regarding instructions for accessing verifications through NDVerify for LIHEAP only cases. IM 5181 will be incorporated into the Administrative Procedures Policy Manual 448-01 as a new section.
  8. Individual Indian monies. (See 415-25-05-30 #17, n.)
  9. Mineral leases

Payments received from mineral leases are included as income. Bonus payments on mineral leases (usually a one-time payment) are also to be added to the annual income. Use the amount as shown on the most recent tax report if self-employed and a tax report is used. If a tax report is not used, the bonus is considered a one-time only payment described in (14) below.

 

EXAMPLE: If the lease payment for a five-year lease is made during the first year the status as income producing continues in years 2-5 even though there are no payments.

  1. Income-producing property

When calculating income from income-producing property, cash expenses of producing income and maintaining the property can be deducted. However, when the household obtained a loan to make a purchase and is making purchase payments on this property, ONLY the amount of the interest paid for the loan may be deducted as an expense, but NOT the amount paid on the principal.

  1. Department of Defense Subsistence Supplemental Allowance for members of Armed Forces.
  2. Income from rental of property

Income from royalties (gross) or rental of property (gross receipts minus expenses) must be included in the determination of annual income. If rental income is being taken from IRS forms (Schedule E or Form 4835), it is necessary to add depreciation back in. If the household does not report rental income to the IRS, the following types of expenses may be deducted: advertising, cleaning and maintenance, insurance, interest, legal or professional fees, repairs, supplies, taxes (but not income taxes), utilities.

 

If the rental property is part of the household's primary residence and expenses for each portion of the property have not been separated, the household must provide a measurement of the rental portion and the household's living unit in order to establish a percentage of the expenses of the entire property which may be deducted from gross rent receipts.

  1. Income from Contracts for Payment

The interest portion of payments received for any contractual right to receive payments (such as Contracts for Deed) must be included in the determination of annual income. If there are any costs to the deed holder, they may be subtracted from the interest earnings. The portion of the payment that reduces the principle of the contract is income from the sale of the property involved and is considered under the asset limitation.

  1. Inheritance and insurance settlements, and annual, periodic, or one-time payments (but not income from sale of property) received from any source between the previous June 1 and the following May 31, UNLESS specifically excluded under 415-25-05-30.
  2. Profit from estates or trusts.
  3. Profit sharing proceeds from Tribal Gaming operations.
  4. Internships, stipends, and other income earned by higher education students that is compensation for work performed, with the exception of wages earned under the Federal Work Study Program. (See 415-25-05-30, #12)
  5. Subsidized Adoption payments.
  6. TANF Kinship Care children must be included in the household, therefore, TANF monthly maintenance payments must be counted as unearned income.
  7. Annual, periodic, or one-time payments from annuities, received between the previous June 1 and the following May 31.
  8. Deemed income from a spouse in a nursing home to the spouse in the community.